Thursday, November 2, 2017



WORLD MARKETS                             

Dow and S & P 500 gained about a fifth of a percent but Nasdaq fell 0.2% after the Federal Reserve kept interest rates unchanged.

The Fed kept interest rates unchanged, as was widely expected. The central bank did not explicitly signal when the next interest rate hike would come, but said economic activity in the U.S. was "rising at a solid rate."

Data from ADP and Moody's showed addition of 235000 jobs in October by the U.S. private sector, which was higher than the expected 2 lakh figure. The ISM manufacturing index in October hit 58.7, a touch better than the 58.6 forecast.

U.S. crude briefly rose more than 1% before settling 0.15% lower at $54.30 per barrel after data showed the draw in U.S. crude stocks fell short of the level earlier reported by the American Petroleum Institute. Gold prices rose 0.5% to settle at $1,277.30 an ounce

In Europe, FTSE and Spain ended marginally lower while DAX soared 1.8% and France and Italy were up 0.2% and 0.9% respectively. Basic resources stocks rose the most following positive manufacturing data released in China and strong gains in metal prices.


Benchmark indices soared more than a percent to hit fresh record high. Sensex added 387 points to settle at 33600 and Nifty finished at 10440, up 105 points. BSE mid-cap and small-cap indices gained 0.8% and 1% respectively. BSE Telecom and Realty indices climbed 3.9% and 2.9% respectively, becoming top gainers among the sectoral indices while Consumer Durable and Auto indices fell 0.6% and 0.2% respectively.

FIIs net bought stocks and stock futures worth Rs 1039 cr and 225 cr respectively but net sold index futures worth Rs 49 cr. DIIs were net sellers to the tune of Rs 668 cr.

Rupee closed at 64.59/$, appreciating 16 paise and closing at the strongest level since September 20.

Maruti Suzuki reported lower-than-expected 10% rise in October sales at 1.46 lakh units. Escort tractor sales were up 13.8% at 10205 units. Eicher Motor posted 18% rise in Royal Enfield sales at 69492 units. Ashok Leyland total sales rose 3% to 12914 units. Tata Motors domestic sales were up 5% at 48886 units. M & M's total auto sales were down 2% at 51149 units and tractor sales dipped 11% to 40262 units.

India's Nikkei manufacturing PMI fell to 50.3 in October from 51.2 in September.

Hero MotoCorp posted 0.6% y-o-y growth in September quarter net profit at Rs 1010 cr. Revenue rose 7.3% to Rs 8362 cr and sales volume was up 11%. EBIDTA rose 6.3% to Rs 1456 cr but margin contracted 20 bps to 17.4%.

Tech Mahindra reported 4.7% q-o-q rise in September quarter net profit at Rs 836 cr. Rupee revenue was up 3.7% at Rs 7606 cr while Dollar revenue was up 3.6% at $1179.2 mn. EBIT rose 22.2% to Rs 840 cr and margins expanded 160 bps to 11%.


Today morning, Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a marginally lower start for our market.

We had been working with the target of 10440 after 10340, the top made after the gap up opening following the bank recpitalisation news, was taken out. Nifty yesterday touched a high of 10451 before closing at 10440, achieving this target and vindicating our view.

10550-10600 is the next major target as well as resistance zone. Immediate support on the hourly chart has moved up to 10320, with the stop-loss of which, trading longs should be held on to.

Vedanta, Glenmark and Powergrid will report their quarterly earnings today.

Bank of England, at its policy meeting today, is expected to raise interest rates for the first time in more than 10 years.

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